Creating a "Culture of Compliance"
The challenges that a retail jewelry store faces today are daunting, given such factors as the volatile economy, internet sales and the pressure to incorporate social responsibility into daily business practice. In addition, the ever-increasing appetite for law suits and government enforcement intensifies the pressure.
There is a way to put at least some of these concerns easily to rest. By creating a culture of compliance throughout your company, you reduce the risks associated with law suits or government action while maintaining the highest business standards for your customers.
What is a "culture of compliance?" It is a general understanding among all employees that engaging in legally compliant conduct is critical to the success of your business. Having established this culture, it is vital that you communicate your dedication to compliance to your customers and your community. By letting everyone know that you place legal compliance high on your list of priorities, you are promoting your business and branding yourself as a jeweler who can be trusted. All of this is good for your bottom line.
So, how does one create this culture of compliance? First, I suggest you assign one employee (maybe you!) to be your compliance guru. The guru will spend time understanding compliance and researching the tools to best incorporate these practices into the daily life of your store.
Where to start? Of course, I think visiting the JVC web site - www.jvclegal.org - is the best place to start - because it identifies all of the various areas of concern. But, before you get there - let me give you a quick list of topics that your guru ought to address to ensure your business is protected:
- Identification of product, including disclosure of treatment to gemstones
- What to include on your invoice, including warranties and sales terms
- Anti-money laundering program requirements, including cash reporting
- Jewelry appraisals and the legal standards that apply to avoid liability
- Purchase of jewelry or precious metals from members of the public
- Compliance with international trade provisions covering irradiated gemstones, jade and rubies from Burma, the System of Warranties for diamonds, etc.
These topics and others are covered in various JVC publications which we note in frequent updates to our members. They are also covered in seminars that the JVC presents at trade shows and other venues. So, your compliance guru might want to be sure that your business is a member of the JVC to have full access to all of its programs and benefits. In fact, joining the JVC is an automatic compliance program: it makes compliance and the avoidance of legal risk easy.
Knowledge is power, and ignorance is no excuse for lack of compliance. So, assign a compliance guru, train all employees to make legal compliance an important part of their day and make sure you have the tools you need to be compliant.
A reputation for integrity and attention to legal compliance will go far towards building your reputation and your bottom line. Integrity gives consumers confidence in buying from you, turns them into loyal customers and inspires them to send their friends to your store.
